Netflix’s recent crackdown on password sharing appears to be yielding positive results for the streaming giant. Despite some users canceling their accounts in response to the new rules, data from analytics firm Antenna suggests that the move has contributed to a significant surge in new account sign-ups.
According to Antenna, Netflix experienced its highest number of daily sign-ups in the four and a half years of tracking data. Specifically, on May 26th and 27th, nearly 100,000 new sign-ups were recorded each day. Over the course of the four-day period, Netflix averaged 73,000 new memberships, a 102 percent increase compared to the previous 60-day average.
While there was an increase in account cancellations during this period, Antenna noted that the number of new sign-ups far surpassed those figures. This spike in new Netflix account registrations is the largest observed in the United States since the COVID-19 lockdowns began in March and April 2020.
It is important to note that these statistics are not officially provided by Netflix. A clearer understanding of how the crackdown on account sharing has impacted the company’s financials will likely emerge when Netflix reports its next quarterly earnings, expected in mid-July.
Netflix initiated its trial crackdown on password sharing in Latin America before extending the new rules to Canada, New Zealand, Portugal, and Spain in February. In the United States, subscribers are now required to pay an additional $8 per month for viewers accessing the account from outside the primary household. However, users can still enjoy Netflix content while away from home. Netflix offers the option to transfer an existing profile to a new account, allowing users to retain all their preferences and data.
As Netflix continues to adapt its policies to curb unauthorized account sharing, the recent surge in new sign-ups suggests that the company’s strategy is gaining traction. It remains to be seen how these changes will ultimately impact Netflix’s overall performance and user base, which will become clearer with the upcoming earnings report.
